Compulsory Acquisition of Land in Victoria
From time to time land owners may be faced with the possibility of their land being taken from them. This process is called the compulsory acquisition of land. The compulsory acquisition of land usually involves a government authority such as VicRoads or the Water Authority, but in some cases private entities may also have the right to acquire privately owned land. Land acquisition generally relates to a proposed purpose such as the construction or widening of roads, railways, parks, reservoirs, sewerage works and drainage. The acquiring authority may seek to acquire all or part of a parcel of land.
The process for compulsory land acquisition is set out in the Land Acquisition and Compensation Act 1986 (Vic). The acquiring authority must comply with a wide range of duties and obligations.
As an initial step, the acquiring authority must give notice of its future intention to acquire the land to everyone who has an interest in the land. This notice places immediate restrictions on the title to the property. For example, the property cannot be sold without the consent of the authority and the owner cannot make any improvements on the land of a durable nature. If you receive a notice, it is important to seek immediate legal advice.
In order to acquire the land, the acquiring authority must also serve a notice of acquisition. The acquiring authority must wait at least two months before serving this second notice. However, this second notice is crucial as it automatically transfers ownership of the land to the acquiring authority from the date of the notice.
The acquiring authority is required by law to make an initial offer of compensation to those persons who have an interest in the land after the notice of acquisition has been published and served. The offer must set out the amount that the authority considers to be a reasonable estimate of compensation. The amount must be supported by a certificate of valuation from a government appointed evaluator confirming the estimated compensation amount. Persons receiving an offer of compensation must respond by either accepting the offer or by rejecting the offer and making a claim.
If the acquiring authority and persons having an interest in the land cannot agree on the amount of compensation, they are deemed to be in dispute. The claimant may then initiate legal proceedings to have the dispute heard in the Victorian Civil and Administrative Tribunal of the Supreme Court of Victoria.
If you have received a notice of intention to acquire land or believe that an authority may wish to acquire your land in the future, it is a good idea to seek prompt legal advice. A lawyer can assist with the process by advising you of your rights and obligations. In addition, a lawyer can negotiate on your behalf with the expropriating authority to ensure you receive all compensation to which you are entitled. Lawyers can also work with evaluators or other experts to ensure that all necessary reports are prepared. Finally, if required, a lawyer can prepare and lodge your claim for compensation and can initiate any legal proceedings which may be necessary.
